Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
 National income is the income of the country It is defined as the “money measure of the  overall flow of final goods & ...
 Many economists have given these  their definition According to pigou “National  income is a part of the objective  inc...
   According to fisher national income    is “the national dividend (or)    income consists solely of services as    rece...
   According to marshall “the labour    & capital of a country acting upon    its natural resources produce    annually a...
   According to it national income estimates    measures the volume of commodities &    services turned out during a give...
 Natural Resources Quality & Quantity of Factors of Production State of Technology Political will & Stability
 It is the aggregate value of all final goods &  services produced in a country in a year It does not include the interm...
 The goods & services purchased by the  consumers ; C Investments made by public & private sectors  ;I Government expen...
Taxes (IT):The price of a good includes the manufacturing cost & indirect tax . Hence to know the real cost we must subtr...
 Using the above components we definea. GNP at market price = C+I+G+(X-M)+(R-P)b. GNP at factor cost = C+I+G+(X-M)+(R-P)+...
   In the
National income
Upcoming SlideShare
Loading in …5
×

National income

927 views

Published on

  • Be the first to comment

National income

  1. 1.  National income is the income of the country It is defined as the “money measure of the overall flow of final goods & services in an economy during a year” It is taken as the aggregate of incomes earned by individuals in a country This includes the goods & services produced by government , exports & imports These are necessary to determine the national income of a country It is taken for a given period of time
  2. 2.  Many economists have given these their definition According to pigou “National income is a part of the objective income of the community including of course income derived from abroad which can be measured in money”
  3. 3.  According to fisher national income is “the national dividend (or) income consists solely of services as received by ultimate consumers , whether from their material or from their human environment”
  4. 4.  According to marshall “the labour & capital of a country acting upon its natural resources produce annually a certain net aggregate of commodities , material& immaterial including services of all kinds is called as annual income of a country
  5. 5.  According to it national income estimates measures the volume of commodities & services turned out during a given period of time counted without depreciation
  6. 6.  Natural Resources Quality & Quantity of Factors of Production State of Technology Political will & Stability
  7. 7.  It is the aggregate value of all final goods & services produced in a country in a year It does not include the intermediate goods
  8. 8.  The goods & services purchased by the consumers ; C Investments made by public & private sectors ;I Government expenditure on public utility services ;G Incomes earned through international trade ; (x-m) x= value of exports ;m= value of imports Net income transfers from abroad (r-p) r=payments received from other countries ;p=payments made to other countries
  9. 9. Taxes (IT):The price of a good includes the manufacturing cost & indirect tax . Hence to know the real cost we must subtract taxes Subsidies(S):Subsidy makes the price of a good different from the real cost . In a developing country like India , to help the producers , the govt. provides incentives to the producers to purchase the factors of production at a price lower than the market price i.e., by subsiding it
  10. 10.  Using the above components we definea. GNP at market price = C+I+G+(X-M)+(R-P)b. GNP at factor cost = C+I+G+(X-M)+(R-P)+ IT+S
  11. 11.  In the

×